Reducing Emissions

The Big Picture

Reducing emissions is the central component of any emissions strategy. The first step a company should take in their approach to climate change should be to perform an emissions assessment in order to determine where emissions are created in the organization and where the savings can be made. Once this is done, it will be easier to asses which practices and technologies should be pursued.

Most emissions are costly to your business, but implementing policies and procedures aimed towards reducing these emissions can minimize such costs while still achieving the same operational results. There are many options available for the company concerned with such issues. Some simple actions include increasing equipment efficiency, switching to renewable energy, and reducing paper use. Other actions are sector-specific, such as co-generation for energy-producing companies. Many opportunities to reduce emissions can be found within the company, such as reducing travel, and these can be taken in increments, requiring little or no upfront investment. Larger projects, such as replacing equipment with more efficient models, may take longer to implement. Actions that yield large benefits often require up-front investment and can have long payback periods — for example, incorporating energy efficiency, natural lighting and shading, and other “green” elements into new buildings as they are built or retrofitted.

Key Players

There are numerous government programs, industry groups, and nonprofit organizations that help companies reduce emissions. The resources offered by these organizations may not always be listed explicitly as “emissions-reduction” actions, but they usually provide the same effects and should be looked into as well.

Government programs across sector. The US Environmental Protection Agency’s Energy Star Program offers many resources to help businesses with increasing the energy efficiency of their buildings. Another EPA program, WasteWise, offers resources to help companies reduce production of solid waste, which can also reduce greenhouse gas emissions, and their Methane and Climate Change program, works with businesses specifically to reduce emissions of methane, a greenhouse gas second in importance to carbon dioxide.

The Department of Energy is another federal agency offering programs that help companies reduce emissions. For example, its Office of Industrial Technologies works with industry to identify plant-wide opportunities for improving energy efficiency.

In the US, there are also many government-sponsored emissions-reduction programs at the state and local levels.

Government sector-specific programs. Government agencies offer a number of sector-specific emissions-reduction programs. For example, the US EPA’s Voluntary Aluminum Industrial Partnership works to reduce emissions of perfluorocarbons, a potent greenhouse gas. EPA’s Emissions Reduction Partnership for Electric Power Systems works with electric power providers to reduce emissions of sulfur hexafluoride. The Natural Gas STAR Program works to reduce emissions of methane. AgStar, a program of the EPA and departments of Agriculture and Energy, works with agricultural operations to reduce methane emissions from confined animal feeding operations. In addition to these climate-specific programs, EPA’s Energy Star also offers energy efficiency resources for specific sectors, including retail and healthcare.

Nonprofit and industry groups. There are also a number of nonprofit organizations that work with businesses to increase energy efficiency and reduce emissions. The Center for Energy and Climate Solutions is helpful for businesses across sectors and also offers resources specific to big box retailers, hotels, and data centers. The Rocky Mountain Institute also provides information on reducing energy consumption for a variety of companies. The Global Environmental Management Initiative’s Business and Climate Change Web site contains information on many practical steps for reducing emissions through energy efficiency, facility design, renewable energy use, and other means.

The Upside

As an essential component of a company’s climate change strategy, reducing emissions can lead to many other benefits.

• Cost savings. By reducing emissions, a company should more than likely see a decrease in their consumption of energy, resulting in savings on electricity and fuel expenses. This may automatically lead to other savings as well. For example, using natural lighting reduces the heat generated by bulbs and in turn would reduce air conditioning costs. Also, by maintaining equipment and ensuring proper use, there will be less of a need for replacement or repair.
  
• Creating a healthier, happier workplace. Some actions can lead to health and safety improvements as well. Natural lighting is not only more aesthetically pleasing in a workplace, but it also is proven to increase a person’s morale, therefore resulting in the efficiency of employees. Also, replacing travel with video or web conferences can lower an employee’s stress levels while reducing travel-related emission.
  
• Synergistic benefits. Undertaking the processes to identify emissions reduction opportunities can lead to additional benefits, including improved product quality, increased productivity, and lower-cost compliance with existing environmental regulations.

Reality Check

• Long paybacks. Although some of the technologies available for emissions reduction will eventually lead to cost savings, the initial investment tends to have a long payback period. Such financial feasibility depends on the changes in the cost of capital. However, a business can always start with a multitude of smaller and essentially cost-free options that will also make a significant improvement their emissions.
  
• Convincing the staff. To be successful in reducing emissions, a change of ethos within the company is usually necessary. It is important to involve the staff from the beginning and emphasize the impact of their individual efforts so that they use the environmentally friendly facilities available.

Action Plan

There are many actions a company can take. One course of action is to start with simple changes with little investment and short payback periods, and then move on to larger, more expensive or time-consuming actions.Relatively simple, short payback actions include:

• Energy-related actions. Companies can easily become more energy efficient simply by making minor changes. Some easy starting points include maintenance of equipment, making sure power saving facilities are enabled and that power isn’t wasted where it isn’t needed. These are rather simple and straightforward actions such as tuning heating units and air conditioners, keeping equipment clean, turning off machines that aren’t being used and making sure that water taps are off and washers are in good use. This is where the company’s ethos really comes into play. Each individual must take on the responsibility of doing their part in order to create a noticeable difference in the amount of emissions. The British government has posted a useful list of globally relevant practices at http://www.environment-agency.gov.uk/business/
  
• Reducing business travel. Business travel, especially air travel, causes large amounts of emissions and may be the largest source of emissions for some companies, especially office-based companies. Reducing travel, for example by replacing travel with videoconferencing, can create significant emissions savings.

Actions that require a somewhat greater investment:

• Reducing building electricity and cooling needs through use of natural light and shade.
  
• Reducing and minimizing building space.
  
• Seeking alternative energy sources.
  
• Advanced lighting an technologies such as insulating the walls and ceilings, installing double-paned windows, timers and motion detectors, corridor and room partitioning to restrict heat flow, and obtaining efficient boilers and heat exchange products.
  
• Considering transportation needs related to location. A downtown office building may make it easier for employees to use public transportation instead of personal cars. A company located close to suppliers, sources of raw materials, or clients may dramatically reduce shipping and/or transportation costs.

Leads

• Center for Energy and Climate Solutions, a division of the Global Environment and Technology Foundation, works with businesses to promote energy efficiency and reduce greenhouse gas emissions. The Center runs a separate website, CoolCompanies.org, which offers emissions reduction suggestions for businesses across many sectors.
  
• US Environmental Protection Agency runs many programs that are useful for companies seeking to reduce emissions or increase energy efficiency. A good starting point is the Climate Protection Partnerships Division, which runs many of the programs detailed above.
  
• Rocky Mountain Institute is a nonprofit organization that offers numerous energy efficiency resources and also works with companies on a fee basis. Their web site offers a unique perspective on corporate transformation and systems of thinking, providing readers with current topics and issues.
  
• Pembina Institute, a nonprofit organization working in partnership with many Canadian and multinational companies, operates Climatechangesolutions.com offering extensive emissions reduction actions for companies in Canada.

Bottom Line

Reducing emissions goes to the very heart of a company’s climate commitment. While other strategies such as trading emissions credits and purchasing carbon offsets may be part of the solution, long-term emissions reductions will be required to stabilize carbon dioxide levels in the atmosphere. Actions taken to reduce emissions can save a company money, increase productivity, and have other beneficial effects in addition to meeting a company’s climate pledge.

Updated October 2007 by Christina Syriani.